It's not exactly a happy time for the French video game flagship Ubisoft... according to our colleagues at BFM Buisiness, the last financial year was tumultuous for the French video game publisher. And for good reason: the firm suffered an annual net loss of 494.2 million euros in 2022-2023, a significant drop from the previous year, which saw a profit of 79 million. These dismal figures are attributable to the postponement of several major games, including the much-anticipated opus of the Assassin's Creed franchise, Mirage, Avatar: Frontiers of Pandora, Skull and Bones, and Prince of Persia Remake, which has been postponed indefinitely. The disappointment was particularly notable in the fourth quarter, with a 56% drop in revenues to 310.7 million euros.
However, despite these disruptions, Ubisoft remains optimistic for the 2023-2024 fiscal year. The company expects to return to profit with an operating income of around 400 million euros, a figure comparable to that of 2021-2022. In addition, Ubisoft expects strong growth in net bookings thanks to the releases planned for next year, including Assassin's Creed Mirage and Avatar: Frontiers of Pandora, barring further delays.
At the same time, Ubisoft has confirmed its plan to reduce costs by more than 200 million euros over two years, which includes a reduction in the workforce and the sale of assets. The firm has already started to implement these measures, closing five offices in Europe in recent months, reducing its workforce to less than 20,000 employees. In addition, Ubisoft has strengthened its strategic focus on the most promising opportunities and launched a significant cost reduction plan, while allowing more time for the development of its strong content pipeline.
Finally, despite the difficulties encountered, Ubisoft has managed to maintain the success of its Assassin's Creed franchise. The latest installment, Assassin's Creed Valhalla, recorded 44% more players thanAssassin's Creed Origins and 19% more thanAssassin's Creed Odyssey over the year. For the coming year, Ubisoft plans to further develop its games in "free-to-play" and on mobile, thanks to a mobile licensing agreement signed in July for one of its major brands and a partnership with Netflix. A loss that will soon be a bad memory...
